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Mortgage High Fees
wskxd14
Posts: 14 Forumite
I am selling my flat that I used to rent and I had recently taken out a buy to let mortgage(november 06) fixed for 3 years. I contacted the Mortgage company(mortgage express ) who advised me that as I was in my 1st year if their mortgage i would have to £3189 on top of the money I borrowed and also a £175 admin charge. Is there any way of claiming anything back or is my hands pretty much tied ?
Cheers
Cheers
0
Comments
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You cannot claim any of it back as you are the one choosing to end the mortgage early.
Early Redemption Penalties are not illegal nor are they reclaimable. You agreed to take an incentive product from the lender for a set period of time in return for remaining with them for that period. They have every right to charge you for leaving early as they will be the one's losing out financially, as the product will have been costed for you remaining with them throughout the whole incentive term.0 -
Andrew I was under thge impression that the ADMIN fees can be claimed back as not proportional tho?:beer: Well aint funny how its the little things in life that mean the most? Not where you live, the car you drive or the price tag on your clothes.
Theres no dollar sign on piece of mind
This Ive come to know...
So if you agree have a drink with me, raise your glasses for a toast :beer:0 -
Not quite Lynz.
If, for example, you took a mortgage with XYZ 2 years ago, and your mortgage offer stated an exit fee of £225, you cannot claim this back as you signed the offer in agreement to this fee.
If you took a mortgage out say 8 years ago with no mention of exit fee on the original offer and you still have that exact same product unchanged then you can claim back the whole fee as you did not sign in agreement to it.
If you took out your mortgage say 5 years ago and the offer stated exit fees of £95, but you are being charged £295 then you can claim back £200.
It cannot be claimed back however as a disproportionate fee or punitive charge as it is not, as such, a penalty but a charge for the closing of the mortgage account which the borrower would have agreed to pay at the time of accepting the mortgage and effecting legal completion. Yes they may charge a lot for doing what is quite simple but, as with a plumber or builder, you know the charge up front and agree to it before taking the product.
Make sense?
Andy0 -
yeah just about
I'm just glad I dont deal wioth mortgages any more
:beer: Well aint funny how its the little things in life that mean the most? Not where you live, the car you drive or the price tag on your clothes.
Theres no dollar sign on piece of mind
This Ive come to know...
So if you agree have a drink with me, raise your glasses for a toast :beer:0 -
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